BCom In Accounting & Finance (BCAF) SEM V 2018 19 Nov 2018-19 FINANCIALACC VI Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 [A] STATE WHETHER THE FOLLOWING STATEMENTS ARE TRUE/FALSE [ANY 8] 8 marks
   • 1. Accounting for banking transactions involves double entry system of book keeping
   • 2. Accounting for banking transactions requires tallying of trial balance of general ledger on a daily basis
   • 3. Incase of accounting for Insurance Company AS-3 for cash flow statement will be applicable
   • 4. Every insurance company is governed by the Companies’ Act 1956
   • 5. Every non-banking financial company must have a minimum net own fund of rupees 200 lakhs
   • 6. Most chit fund companies are non-banking financial company
   • 7. Abusiness firm earning normal profits with least investment cannot comprise goodwill
   • 8. Valuation of shares majorly refers to valuation of equity shares
   • 9. Limited liability partnership combines the advantage of a partnership firm and a joint stock company
   • 10. It is not mandatory to register limited liability partnership firms
2. Q1 [B] FILL IN THE BLANKS WITH APPROPRIATE OPTIONS [ANY 7] 7 marks
   • 1. In case of a nationalised banks, capital is fully owned by the
   • A] Reserve Bank of India B] Central Government
   • C] State Government D] None of the above
   • 2. refers to finance availed or provided by different branches of the same banking company
   • C] Inter office adjustments None of the above
   • 3. If sum of all associated insurance cost exceeds related reserves for unexpired risk
   • C] Either D] None of the above
   • 4. When two or more insurance company share risk it is known as
   • 5. Non-banking financial company mostly cater to the
   • 6. Non-banking financial company are registered under
   • C] Reserve Bank of India D] IRDA
   • 7. Super profit is the profit earned over and above the
   • 8. For valuation of shares on the basis of profits an investor compares expected rate of
   • A] Estimated rate of returns B] Normal rate of return
   • C] Reasonable rate of returns D] Both A and C
   • 9. A Limited liability partnership cannot raise finance through NBFC D] Bills of Exchange
   • 10. In the absence of LLP agreement the rights of partners are determined by of LLP Act 2008
3. Q2 [A] From the following information of Progressive Bank limited prepare profit and loss account for the year ended March 2018. Also prepare the corresponding schedules. [Rs.in Lakhs] 15 marks
   • 1. Transfer 25% of current year net profit to statutory reserve
   • 2. Transfer 10% of current year net profit to proposed dividend
4. Q2 [B] Following is the trial balance of United Bank Limited as on March 2018. Prepare the balance sheet and the relevant schedules 15 marks
   • 1. Create 25% Statutory Reserve on current years profits
   • 2. Bill for collection is Rs. 30000
   • 3. Outstanding liability on forward exchange contract Rs. 80000
   • 4. Guarantee given on behalf of customer Rs. 50000
   • 5. Acceptances & Endorsement were Rs. 20000
5. Q3 [A] From the following Trial Balance of Mohan and Sohan you are required to prepare a trading and profit and loss Account for the year ended March 2015 and Balance sheet as on that date after taking into consideration the additional information : TRIAL BALANCE AS ON MARCH 2015 15 marks
   • 1) Partners share their profits and Losses in the Ratio 3:2
   • 2) The closing Stock at cost Rs.20,000 and Market Price Rs.22,500
   • 3) Rs.225 written off as Bad Debts form Debtors
   • 4) Outstanding Salaries and Wages Rs.400
   • 5) Depreciation on Land and Building @ 7.5%
6. Q3 [B] SOLVE [I] AND [IT] From the following information calculate the Intrinsic Value of Share 15 marks
   • 1. All the Tangible assets were revalued Rs.3500000
   • 2. External Liabilities were valued at Rs.250000
   • 3. 8% Preference shares worth Rs.700000 were to be redeemed Preference shares were to be redeemed at premium of 20 %
   • 5. Preference Dividend were in arrears for 4 years
   • 6. Total number of Equity Shares were 10000 From the following information ascertain the value of goodwill on the basis of Capitalization of
   • 1. Profit for the past 5 years is as follows
   • 2. Good will is considered at 3 years purchase of super profit
   • 3. Normal Rate of Return expected is 5%
   • 4. Remuneration payable to partner is Rs. 10000
   • 5. All Tangible assets were valued at Rs. 1200000
   • 6. All outside liabilities at Rs. 800000
7. Q4 [A] From the following Balance of Sunlife Insurance Company Ltd .Prepare the necessary Revenue Account and Profit /Loss Account for the year ended 2013-2014 15 marks
   • 1. Reserve for Unexpired Risk for Fire 50% and Reserve for Unexpired Risk for Marine 100%
   • 2. Additional Reserve for Fire 10% on Net Premium is to be provided on additional Reserve
   • 3. Outstanding Claims on 31-3-14 for Fire Rs.100000 Outstanding Claims on 31-3-14 for Marine Rs. 1300
   • 4. Common Expenses Rs. 30000 has to be charged to both departments
8. Q4 [B] From the following figures relating to New Life Insurance Company. Prepare Revenue Account for fire Department tin vertical form for the year ended March 2009 15 marks
   • 1. Expenses of Management include Survey free of Rs. 62000 and Rs. 50000 in respectively in relation
9. Q5 [A] [i] What are the factors affecting goodwill of a firm? [08] [ii] What are the types of General Insurance? [07] 15 marks
10. Q5 [B] WRITE SHORT NOTES [Any 3] 15 marks
    • 1. Interoffice Adjustments of a Bank
    • 2. Cash Reserve Ratio in Banks
    • 3. Intrinsic Value of Shares
    • 4. Rebate on Bill Discounted
    • 5. Unexpired Risk Reserve in Insurance

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